Organizations turn to AI as data breach costs jump 12%: IBM

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Bad actors are capitalizing on artificial intelligence (AI) to swiftly carry out cyberattacks, but a recent IBM (NASDAQ: IBM) report found that global organizations are countering this by reinforcing their cybersecurity with the same technology.

In its Cost of a Data Breach Report 2026, which surveyed 16 countries and regions, IBM noted a 56% increase in AI-driven attacks from 2025, with the global average cost of a data breach climbing 12% to reach $4.99 million, or $1,100 per hour.

The costs of data breach refer to the expenses businesses incur in detecting and containing the attacks, settling regulatory fines and legal expenditures, as well as credit monitoring for victims.

The United States topped the list with an average breach cost of $11.5 million, up 13% in 2025. It is followed by the Middle East at $8 million and the Benelux region at $7.37 million. Meanwhile, the Association of Southeast Asian Nations (ASEAN) region sits 9th in the overall ranking with $4.12 million, while Brazil is at the bottom with $1.41 million.

South Africa also made the list in 12th spot, and although its average breach cost stands at only $3.04 million, the country saw the largest percentage increase at 22%.

According to the IBM report, AI-driven attacks were partially to blame for the rise in data breach costs, noting that bad actors are opting to use AI tools as they become cheaper to launch, on top of their capability to execute swift attacks at a massive scale.

“That speed is reshaping breach economics—and not in a good way,” IBM said, noting that AI-driven attacks tend to be more expensive for organizations, adding an average of $1 million per breach.

Regardless of the technology, phishing was recognized as the top attack vector organizations often deal with, while supply chain compromise came in second. Meanwhile, surveyed businesses identified attacks that use data replication on removable media as the most complex and longest to resolve.

In terms of industry, the financial services and energy sectors bear the brunt of AI-related cyberattacks, registering an average of $6.29 million and $5.2 million, respectively, in data breach costs.

“The concentration of AI-driven attacks across these two independent sectors creates a systemic risk. Disruptions in one organization can cascade into broader impacts across consumer finances, economic systems, and power grids,” IBM warned.

Despite the risks associated with AI misuse, surveyed organizations believe that the technology is an effective tool to cushion the impacts of cyberattacks.

From 65% last year, 85% of polled businesses are now eyeing to ramp up their security spending after experiencing a breach. Of this percentage, 74% said they are looking to harness AI agents and deploy them in their security operations center (SOCs), particularly in areas where the technology is underrepresented, including alert triage, penetration testing, as well as vulnerability scans and management.

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